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B-BBEE Tourism Sector Code vs. B-BBEE Codes of Good Practice: When Can You Use a B-BBEE Affidavit
Picture a small guesthouse owner reviewing their B-BBEE position ahead of a corporate booking contract. Their Turnover sits comfortably under R10 million, so by the rules most businesses know, a B-BBEE Affidavit should be enough. Yet the corporate client’s procurement team comes back asking for a B-BBEE Certificate that was verified by a SANAS Verification Agency. The guesthouse owner is confused, and understandably so, because the Tourism Sector Code is one of the clearest examples of a sector where the B-BBEE Generic Codes simply don’t apply in the way most business owners expect.The Tourism Sector Codes cover a wide value chain, including accommodation, hospitality, travel, and related industry services, and they set their own thresholds, their own ownership targets, and their own scoring incentives. Here’s what that means in practice.

Why the Tourism Sector Code’s Lower Turnover Threshold Affects Your B-BBEE Affidavit Eligibility

The most immediate difference in the B-BBEE Tourism Sector Codes is that the turnover thresholds is considerably lower than the B-BBEE Generic Codes most businesses are familiar with:

  • Exempted Micro Enterprise (EME): Annual turnover below R5 million. A Sworn Affidavit or CIPC Certificate will apply.
  • Qualifying Small Enterprise (QSE): Annual turnover between R5 million and R45 million. Where a business has at least 51% Black Shareholding, a Sworn Affidavit can still be used. Businesses with less than 51% Black Shareholding need to be verified by a SANAS Accredited Verification Agency.
  • Generic: Annual turnover above R45 million, classified as a Generic business and required to be verified by a SANAS Accredited Verification Agency.

This is the detail that catches the guesthouse owner above off guard. A turnover comfortably “under R10 million” by Generic Codes standards may already sit well within Tourism’s QSE band, which carries very different requirements depending.

Higher Ownership Targets Set for the B-BBEE Tourism Sector

The B-BBEE Tourism Sector Codes also sets higher targets on ownership than the B-BBEE Generic Codes. Where the Generic Codes work from a 25% Black ownership benchmark, the Tourism Sector Code requires:

  • 30% Black ownership
  • 15% Black women ownership

For Companies falling in the B-BBEE Tourism Sector, this means ownership transformation needs to be planned with the sector-specific target in mind from the outset, rather than benchmarked against generic expectations.

A Sector-Specific Incentive: The TOMSA Levy

One feature unique to tourism is recognition of TOMSA levy collector status. Businesses that collect the Tourism Marketing South Africa levy earn bonus points under the Socio-Economic Development category of their scorecard. It’s a small detail, but one that rewards businesses already participating in the levy system, and a useful reminder that the B-BBEE Tourism Sector scorecard isn’t simply the Generic scorecard with different numbers attached. It includes its own indicators that don’t exist outside the sector.

The Implications for B-BBEE Tourism Sector Companies

The risk for tourism businesses isn’t a lack of compliance effort. It’s the assumption that “under R10 million” or “under R50 million” Annual Turnover means the same thing it would do in any other industry. A guesthouse, tour operator, or hospitality business that builds its B-BBEE planning around the B-BBEE Generic Codes may find itself either under-prepared or invested B-BBEE expense that they don’t need.

The safer approach is to establish how a business’s turnover compares against the B-BBEE Tourism Sector Code and confirm what that means for sector specific planning and strategy.

Not Sure How Your Company That Falls Under the B-BBEE Tourism Sector Code Measures Up?

Elevate Advisory Partners can help confirm the correct classification for your business, prepare the right documentation, and identify scoring opportunities specific to the tourism sector. Get in touch at info@elevateadvisory.co.za or visit www.elevateadvisory.co.za to get started.

Frequently Asked Questions

Does the B-BBEE Generic Codes apply to my tourism business?

No. If your business falls within the tourism value chain, including accommodation, hospitality, travel, or a related service, the B-BBEE Tourism Sector Code applies instead of the B-BBEE Generic Codes. It sets its own turnover thresholds, ownership targets, and scoring criteria.

What turnover qualifies for a B-BBEE Affidavit in the tourism sector?

A tourism business with an annual turnover below R5 million qualifies as an Exempted Micro Enterprise (EME) and can use a Sworn Affidavit or CIPC Certificate. This threshold is lower than the R10 million EME cut-off under the B-BBEE Generic Codes.

Can a Qualifying Small Enterprise (QSE) in tourism still use a B-BBEE Affidavit?

Only if the business has at least 51% Black Shareholding. Tourism QSEs, with turnover between R5 million and R45 million, that have less than 51% Black Shareholding must be verified by a SANAS Accredited Verification Agency instead.

What ownership target applies under the B-BBEE Tourism Sector Code?

The Tourism Sector Code requires 30% Black ownership and 15% Black women ownership. This is higher than the 25% Black ownership benchmark used under the B-BBEE Generic Codes.

Does collecting the TOMSA levy affect my B-BBEE scorecard?

Yes. Tourism businesses that collect the Tourism Marketing South Africa (TOMSA) levy earn bonus points under the Socio-Economic Development category of their scorecard.